The New Nation - Internet Edition

BUSINESS REPORT

Praising the Bangladesh Bank initiative to pursue the commercial banks for reducing the interest rate margin between deposit and lending, business leader Latifur Rahman expressed the hope that such a move would help business to invest more in setting up basic industries in the country which is very crucial for any sustained development.

Rahman, who is also the Vice-President of International Chamber of Commerce (ICC)-Bangladesh, said this while inaugurating a day-long ICC workshop on 'International Trade Payment Practices' at the city's Bangladesh-China Friendship Conference Centre organised for the commercial executives of RMG sector in collaboration with GTZ, Germany.

He said problems between importers and exporters often arise when they get involved in any business deal with a foreign counterpart and do not use appropriate wordings in their contracts for avoidance of any potential dispute.

"If a dispute arises, neither the concerned bank nor we at ICC could help them because of inappropriate provisions in the contract.

President of BGMEA Anwar-ul-Alam Chowdhury Parvez said that though the banks have lowered the interest rate by meager one percent only, but it s still much higher than interest rates of 3-5% given by the neighbouring countries, in particular to export-oriented industries to be competitive.

President of BKMEA Md. Fazlul Hoque requested the ICC,B to formulate a body that can settle the disputes in the international trade payment system.

ICC,B Banking Commission Chairman and Citibank N.A. Managing Director Mamun Rashid said that the country would be facing the growing demand for open account transactions, which was still missing in the current Import Policy. In Bangladesh scenario, open account transactions are still restricted to Type-A industry in EPZ which should be gradually and selectively liberalized, specially towards the RMG sector in the face of growing demands from their buyers. "Nowadays documentary collection and open account procedures are dominating the cross border trade settlements. Although documentary collection is allowed in Bangladesh but it is still restricted to importing capital machineries, industrial raw materials and perishable food items. This list also needs an expansion but immediately it should cover, at least, the spare parts and accessories of the capital machinery to support the growing industrialization of the country," Mamun mentioned.

ICC expert on UCP Vincent O'Brien also spoke at the inaugural session. Business leaders including A.S.M. Quasem and JCCB Secretary Ataur Rahman, BGMEA Secretary Muhammad Fasihur Rahman, GTZ Progress Senior Business Adviser Ameena Chowdhury also attended the inaugural session. About 125 participants from apparel and knitwear sectors attended the workshop.